Investing for Real-World Change

This is Damon Baxter and I serve as business development director for meeting radio.

The only reason were able to spread the gospel of Jesus Christ on the radio is because of financial support from listeners like you.

We also have businesses support us to like United States mortgage faith and family is at their core, it's why they choose to be such a close partner with our station is why they specifically advertise on Christian radio stations across the country.

It's wife, father and son, John and Ryan still lead the company to this day.

Check out United faith mortgage and their direct lender advantage@unitedstatesmortgage.com thanks to you and to United faith mortgage for supporting beauty radio United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Melville, NY license mortgage backer for licensing information, go to an MLS consumer access.org corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah. This is Damon Baxter and I serve as business development director for meeting radio. The only reason were able to spread the gospel of Jesus Christ on the radio is because of financial support from listeners like you.

We also have businesses support us to like United States mortgage faith and family is at their core, it's why they choose to be such a close partner with our station is why they specifically advertise on Christian radio stations across the country. It's wife, father and son, John and Ryan still lead the company to this day. Check out United faith mortgage and their direct lender advantage@unitedfaithmortgage.com thanks to you and to United faith mortgage for supporting beauty radio United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY license mortgage backer for licensing information, go to an MLS consumer access.org corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah.

Today's version of moneywise live history record store phone lines are not of today, many investors want their assets to do more than provide for their financial futures. They want them to reflect their faith value as well. I am Rob blessed God calls us to be faithful stewards and that means looking beyond the bottom line and stewarding the nonfinancial impact of our investments to speak with Stella tire praxis mutual funds.

Today we have some great goals lined up be taking your live calls today because we are pre-recorded. This is moneywise live legal advice for your financial decision but fortunately we have more options to help investors align their report folios with their values than ever before in here to talk about them as Stella tied the manager of stewardship investing impact and analysis said praxis mutual funds. If you're new to this idea. Praxis is a leading faith-based family of mutual funds and an underwriter of this program Stella were delighted to have you with us today. Thanks, Rob. It's great to be here with you today. Stella you have a unique role and an unusual journey in the mutual fund industry, so I'd love for you to start there today. Help us understand what you do and how you came to work with praxis. Think here that praxis mutual funds. I am privileged to do a couple of things. The first is that I guide the promotion and the integration of impact across various funds and to I also manage community development investing efforts and this relates to impact investing. I have been engaged in the development of financial products which we put out in the community to meet the needs of low to moderate income individuals and you asked me briefly about my history before coming to praxis and it's it's a long one, but I'll start by saying that I was raised in as reason Kenya, you can hear probably that in my accent became a Christian as a as a teenager and by the time I was graduating from college with a business degree. I already knew what my maybe today I could call it my vocation at the time I didn't know what it was. My life's work. I knew that a plaintiff to be at the intersection of financing and human flourishing. I came to the US over 20 years ago to do an MBA in economic development and finance and not doing this NBA in a Christian college I was challenged to think about how can we use money to achieve the greatest good, not just for the onus on the money or the finer spiteful everyone in society and so I didn't in this field of community development finance for most of the time. It's an exciting journey in the work that you do is incredible and I'm so excited for listeners to hear about what's possible is they think about the intersection of their investments and their values. As you well know, Stella praxis has a long history of working to understand the real world impact of investing and delivering values aligned impact to your clients that we just got about a minute before the break, so perhaps we'll just start, but I'd love for you to talk about that a bit.

Why is this work been so important. The reason that this work is so important.

Rob is because praxis when you think about investment management. It starts with the recognition that God owns it all.

Which means that our investors in the praxis team. All course stewards who are entrusted by God with these investments. I job then, is to ask ourselves the big question which is beyond the goal of financial returns, what the faith values and what are the objectives of the true owner who is God of the investments which will end up impacting the world so exciting. When we come back from a break will begin to talk about the real difference.

The real impact that can be made as we think about these investments that you're involved in some stories about that really help us to process what this looks like folks this is exciting work this whole space of faith-based investing is maturing.

There's more options than ever before.

And as you think about your role is older companies through your testing with God's money. What you think about the impact you're having to help you do that today. Come back with Stella tire praxis funds just around the corner, moneywise live with us back to moneywise live Rob last today Stella tire praxis mutual funds.

We want to seek a bottom-line return when it comes to investing God's money, but what about the nonfinancial impact of our investments.

What about the alignment of our investing with her values. Well, that's her subject today and Stella just before the break you were talking about the work that you do in the impact investing real world impact. It's taking place as a result of the investments I'd love for you to tell us a bit of the history and even the methodology of how you go about that great question, Rob would like to let the listeners know that from the very beginning praxis has been committed to moving beyond just the simple avoidance offset in stocks.

That is a valid approach, but we are committed to using all the tools at our disposal to make a real difference in the lives of people but also for creation care which supports kingdom values.

This work is guided by our stewardship investment philosophy, where we emphasize the screening company engagement positive investing and call volumes where we seek to focus on investment activities on businesses and practices that enhance life.

I'm pleased to say that today more and more sophisticated tools are available to incorporate impact into portfolios, showing scene just for the institutional investor as a high net worth individuals, but also for the everyday best time Rob this really excites me. Well it does me as well. This is a game changer. Stella because this makes this type of impact investing. Available to all investors, which was not the case, just even a few years ago. Let's talk about, though, that real world impact give us some examples Stella how praxis mutual funds reflect kingdom values in some of the impact that's occurring. I'm glad you asked Rob has been working very hard at developing strategies that Check the kingdom values we want to see enough funds that bring this real world impact at this time we have seven strategies that we use, and I'm looking to go through them here, but they will be elaborated in impact report.

I would like to mention just one of our strategies which is community development. Investing in here. Praxis commits 1% of each of our funds to investments not to be confused with contributions of crimes, but investments that benefit first neighborhoods and individuals before financial gain.

This is a commitment that's unique to praxis and it allows us to bear witness to our faith which calls us to stand with the widow in the off-line and those seeking really to be set free. Yes is phenomenal and as they say, Stella. The proof is in the pudding. You referenced a moment ago. The annual impact report that praxis produces. I know the second annual edition has just been released. Tell us about that impact report what folks would find in it and where they can get the production of impact report is a new effort to us that we are very proud off and this is only our second year producing and I can tell you that going through this process has really helped bring even greater focus to how we understand and deliver impact what I can say that producing a report of this depth and length of things you'll see once you get a copy of it is truly a significant undertaking and its constant walking progress.

A lot goes on behind the scenes. For example, we have to figure out what's the best methodology for praxis to manage and measure impact or what's the best way to source the data that we need to put the port together and more importantly though, I have to say that beyond the technicalities of putting the report together.

The main reason for producing an impact report is so that I invest as an stakeholders would know what the impact of our funds has been for the previous year so the report then becomes an important accountability tool for invest as faithfully trusting that we are delivering the impact that promised and we hope that when they review our strategies and then be read the stories of real impact on real people, real small businesses, real companies and communities they can get a sense that we are both transparent and accountable to them in the faith values that we share and that we are indeed making a difference together that's powerful but I know they 2021 praxis real impact report was recently released and I'd love for listeners to check it out just head over to praxis mutual funds.com Stella any other examples come to mind of the real change that's taking place in supported kingdom values. That is exciting to you.

Yes, I actually have to examples the first praxis was recently engaged in a dialogue. We joined with members of the interfaith Center on corporate responsibility. This organization is called ICR. You're probably familiar with them for a dialogue with Delta Airlines on efforts to promote human rights in combat human trafficking and am pleased to say that that dialogue went well. It culminated in Delta which is a leader in the airline industry sure issuing an anti-slavery and human trafficking statement outlined the commitment to this issue and then one more example I could share is the last DOE patches the African development Bank's fight Cove at 19 social bond.

This was the largest dollar-denominated social bond ever issued in the capital markets, and its goal was to mitigate the negative social and economic impacts of corporate 19 in Africa which I can tell you.

Even today still pretty devastating.

No question about a wild fortune. We just have about a minute left, Stella would have to have you back but I want to conclude today by allowing you to share the new model you've adopted praxis and what it means to you.

I motto is investing together impacting the world and maybe I'll just pull out one word added that work together investing together. It reminds me of something we saw in the trends report from the forum for sustainable and responsible investing, which says that sustainably invested funds grew by over 42% in the last two years and so when you think about together you think about all those actors that are coming into this space, we saw that at the faith driven investor conference, which some of us swap part of where we had investors from over 50 countries that dissipated in that conference a whip, bearing witness to the impact that the faith community can have on kingdom values together these endless ways to think about how impact will flow through sustainably invested funds in we are happy to Check this potential. Well Stella, this is exciting work is so encouraging to see that investments in our pensions and 401(k)s can deliver real world impact for the kingdom. Thanks for being with us. Thank you for having me still inside praxis mutual funds is better guest. You can learn more praxis mutual funds.com that's PRA XIS mutual funds.com pause for a brief break that much more stable for you.

Join us for moneywise live on Rob. What does this is biblical wisdom for your financial decisions. Their team is taking some time off today so will encourage you not to call in because no one's here to receive the call. However, we got some great questions that we lined up in advance so let's get right to those next up is Roger in Illinois. Listening to W MBI hello Roger, how can I help user with the IRA with the amount of the rule of anyone you know I'm already doing our and not claim the interest as Ernie.

I cannot put it down and get the deduction off of my regular being a donation is my understanding I can give the money but I cannot be used for that will be there, understood it going past year.

That's what I have done.

I used to call page where you can write okay this was by the and I don't let it in with my interest right Roger me this is called a qualified charitable distribution. It's made to a no eligible charity and then that amount is subtracted from your adjusted gross income mean you don't have to pay taxes on it because you would have had to recognize it as income and therefore you're not but you can't then also take it as a deduction that would be a double dip but one of the other benefits is that the ministry or charity gets the full value of the amount that's been given so there's no taxes that would have otherwise reduced it prior to it being given. If you were to receive it the normal way you would an RMD so everybody wins seer satisfying the IRS's and required minimum so they're happy you are happy because you're getting your reducing the amount of income you recognize because your adjusted gross income is lower and the charities drilled because they're getting a contribution.

That's higher, perhaps, than they would have otherwise received so you know, if you haven't been doing. I'd say absolutely don't miss it. And if you have I'd say continue on on on the same small group me know you donation and I know I cannot.

But as I do not have to put it down in trust income, but she was quite right taxes for herself and family and she also was involved with another church keep their books and everything that I have I been doing it wrong. If I been missing. But I don't want to have the IRS you can't do that we want to have a talk with you. Come down and talked like I don't ever want to go in your right, normally with the required minimum your tax debt your income tax rate on the amount you withdraw and you're not having to do that your satisfying the required minimum and you're not recognizing that income, which is therefore reducing your adjusted gross income because you're not paying taxes on it and the charity gets the full value of the amount that was transferred because they certainly don't have to pay any capital gains or income tax on it and everybody wins.

So you would not be able to though turn that into a deduction because that would allow you to miss the recognition of the income and take the deduction that's considered a double dip, the IRS will let you do it so appreciate your call today. Roger, you continue on and do some wise giving as you have been certainly appreciated on to Erie, PA hi Linda, how can I help you later. 73 grown children all in the ministry all 30 acres of property and maybe 100,000.

How do you divide that you do not need homes.

One doesn't need a home when he retires from the ministry value more. How do you yeah well I think the starting point. Linda is really to think through the philosophy behind how you want to give these assets is only three places you can gift assets for an inheritance or to pass the dawn as wealth transfer after your death. The government in the form of taxes, errors, or make ministry or charity and you need to decide as the steward of these assets, how you want it allocated how much do you want to give as an inheritance. How much do you want to give away to support God's work and we certainly want to minimize any taxes that would be required. Fortunately, the estate taxes so high.

Most people don't have to think about that and then for the portion that you want to give to your heirs.

I think you need to talk about how you want that done deal clearly all the assets could be and will be liquidated upon your death and could be distributed equally. If you want, but it doesn't mean you have to infect a financial author, Ron blue, one of my mentors often talks about the fact that if you love your children equally. You will treat them uniquely now that flies in the face of the you what a lot of what we think as Americans we just think that's unfair yet Ron makes the case.

One child may have a greater need than another one may have worked in a family business so you know, in his case. One was a single mom really needed help with another was doing really well financially and so he and Judy have made decisions based on those different circumstances send you a copy of his book called splitting hairs. You stay on the line will get you a copy of that and we'll talk more about this as well stay right back with more money was moneywise today questions lined up so don't call that goal but sit back and enjoy before we go to the phones so we've got some emails that been piling up. Try to tackle a couple of them because we love to give you answers to your questions even when they come by emailing this first one comes from Lisa and Terry, Birmingham, Alabama.

Lisa and Terry right where should we give our time if were between churches think this is a great question. Clearly you all want to honor the Lord with your giving and I think the tithe is a great beginning points we see the time throughout the Old Testament it actually preceded the law of Moses we see reference to it in the New Testament now were under grace right but what we see in God's word is that we should give proportionately and we should give cheerfully as God provides for us. And since we've seen the cross and what Jesus did for us. I think perhaps we should raise the bar and so I like the idea of starting with the principle of the tithe. The 10th to the storehouse or what would be considered today the local church and building that right in your plan. Now if you can't do that today you haven't been giving most Christians today on average are giving about 2 1/2% not 10% will it start somewhere and begin giving systematically on a percentage basis as God provides from all sources and then let's try to move that up over time so you can get to that 10% number what Randy Alcorn calls the training wheels of giving.

But let's not stop there. Then as you begin to see God working as you see his faithfulness and as you get connected to God's activity in the world through your local church, perhaps look for ways to give free will gifts beyond maybe even sacrificial gifts and I promise the Lord will do a work in your life it will bring great joy as you give.

It's amazing what happens now what if you're between churches. Well, that's the question that's being asked here and I would just simply say give wherever God put you on a weekly basis.

Maybe you started doing a monthly time. If you take it a week at a time, calculated breakfast before you go to church or whether you're still online or in person and figure out what is the provision that came in this week and tied to that church and eventually when God places you somewhere else, then I would just put your whole time there, but that in the meantime, I would just be cheerful about your opportunity to fund the work wherever God leads you as you move around and will pray that the Lord makes it clear where you should plan here very soon. All right.

Let's take one more and this says simply says and by the way this comes from Bill and Anita and they ask how can we improve our credit score and credit scores are becoming all more important these days as their use not only to determine your credit worthiness. Whether you will get approved for a loan, but also for insurance premiums, even in your hiring process. Just a whole host of issues credit scores are being used for its made up of some primary categories even though the actual formulas guarded pretty closely.

We know that your payment history is the biggest 135%. So make sure you pay on time. The amounts that you owe is the next highest at 30% and the key there is you want to keep your credit utilization. That is your total balances versus your total available credit. You want those balances to be 30% or less of the available credit. Better yet, 10% or less.

That's going to get your score up.

So pay those balances down the length of credit history, not a whole lot you can do about that. But over time, you'll see that credit score increase any new credit will actually work against you because that showing that you're out there seeking additional borrowing power and then your credit mix. Do you have revolving accounts and installment accounts and mortgage in a car load. We want to take on debt just so we get our credit score.

But as you have different types of credit. It shows your stability to the credit scoring companies and it will improve over time. So the absolute most important thing you can do is keep those balances low. I would say paid off in full every month and pay on time and over time you'll see that credit score continue to rise, and we appreciate your sending that email if you have a question we'd love to hear from you to send an email to questions@moneywise.org all right, let's head to the phone, Chicago, Illinois Angie, you've been very patient I can help you today so I will not tell my question regarding our like whether or not we should be fine reality.

I would like 5% out there now.

Yes, but making that change is going to increase the mortgage because they let yeah so what kind of increase are we talking about is you look at this new 15 year which is by the way, what I'd like to see you do because I don't want you to increase the term which is right now at 17 years. Through this refi.

So how much higher is that each month what interest rate. Have you okay yeah that sounds like I'm surprised it's not much that you're coming down from 5% so I get a couple more love for you to have at least three offers before you take the you settle on one because it's not only the interest rate but there's the expenses and I'm wondering if perhaps they're getting you to buy down this rate I want to make sure your total expenses for the refi are no more than 23% of the loan value at the most so you know if your you got hundred 65,000 were talking about, you know, basically $3000-$4000 at the most. You should be spending on this refi. So in terms of moving forward.

Can you absorb that higher payment in your budget or second put a strain on you. Okay yeah perhaps you need to look at a 20 year and what it's going to come down to is we need to make sure that you know you are going to.

This is going end up saving you money. Number one, but because you're 17 years you, right in the middle between the €15.20. We we need to, I would want to go any more than 20 years, but you don't want to look at the amortization schedule to see what's the total interest were to pay if we just stay with this current loan versus a new 20 year mortgage at in a let's say less than 3% interest, and as long as you stay in the property for that length of time, hopefully till it's paid off, or at least seven years or more than the key would be how many years ago take to cover the cost of the refi and then how much total interest or you save over the life of the loan. So those are to be really the operative question, so I'd like for you at this point Angie to not give up on this. Let's go back and let's get three more bids on a 20 year mortgage to see if that fits better within your budget. And then let's look at those things I mentioned how much total interest savings you have and how much every month and let's see both how long it's going to take for you to pay back the cost of the five and then how much total interest you'll save now and when you pay it off based on a 20 year mortgage at that fits in your budget and I think that maybe your answer in terms of where to go to get those bids go to your local bank within a bank rate.com and look at online lenders. Let's see who has the best loan programs in place right now. Thank rate.com will tell you that. Let's get them to weigh in as well and I think this will become clear. If you have any other questions, give us just moneywise my money trusting the Lord things. Perhaps control afraid God will live up to his end of the bargain will I talk about that in this week's edition of the moneywise weekly wisdom.

The fact that fear can cause us to do things with money that indicates a lack of trust in God can lead to hoarding more lack of generosity and the opposite of that of course is faith.

We want you to lean into trusting the Lord, whose promises are true. Who says I will never leave you or forsake us, and recognize that even before the first dollar of God's money that we manage. We are already in an abundant situation. We been given the gift of salvation through trusting in his son Jesus Christ and his death and resurrection on the cross. We start there and realize we have so much so much even more than we could ever deserve. Well, that's what we try to explore here on moneywise live each day.

How can we handle God's money, in a way that reflects her trust in him reflects his ownership in our role as stewards will do that together and head back to the phones today.

Next up is Linda in Colorado and Linda how can I help me, yeah I have a great down on me and my aunt writes about four going to have to know for sure and I had spent that He had cancer.

I like it. The contractor shall not get my payment down lower would help it that every time I talked about refi. They were better off we are to call you. So if I understand you correctly, Linda. You have two mortgages. And they're both about 60,000. Is that right right okay what is the home worth what we believe the home is worth about 55 okay and so you about 120,000 on it. How long have you had these mortgages okay so you know there's an opportunity there.

Perhaps to see if they might be willing to help you work on the payments you know they often times can recast the mortgage bill. Once you have that much equity to you change the payment that would be one option to refinance the challenge there is. You could get the interest rate down but you're probably not going to address the payment itself until you, you know, unless you were to do a new 30 year mortgage which 20 years into a 30 year mortgage. I don't recommend.

Apart from that, you could look for one of the assistance programs like the mortgage housing assistance program for Colorado homeowners affected by coronavirus. If you are unable to pay her mortgage because of a financial hardship. They have some resources and you can apply online@211colorado.org but there are eligibility limits in terms of income and so forth. But if this is more of a long-term situation at this point other than seeing if they can work with you to re-amortize the loan and get the payment down. The only other option would be a refinance. But again, it's going to involve you getting a new mortgage at a lower rate but perhaps for a longer term where you'd be resetting this, let's say instead of having a tenure payoff. You may have to go to a 20 year payoff to get to the payment you're looking for. Now that would take the pressure off in terms of giving you a payment that perhaps could fit into the budget, but it would extend the payoff of this thing for another 10 years, which I don't like because that means it's good to be hanging around a lot longer and get up a lot more interest. Even with that lower rate. So I think your best option at this point would be to see if there's a way to find some additional income. Perhaps you know you work part-time, or he does.

In addition to what income sources you arty have look for ways to cut back on the budget. So I think all of those are in play, and perhaps maybe the best next step for you. Linda would be to connect with one of our moneywise coaches who could look over your situation. Look at these mortgages. Look at your spending plan and then advise you on where you might go from here you can connect with the coach@ourwebsitemoneywiselive.org and after you do that if you any questions don't hesitate to give us a call back. We appreciate your call today. Let's head to Chicago Floyd how can help user hello are you going to call absolutely.

I will my mom bought a house and turned it over. So company mortgage reverse mortgage and I want to buy, how will I go by to get it back. Yeah well you would want to get a payment in full amount from the reverse mortgage lender. Do you know what that amount is all know okay that be the first step is to let them know that you have inherited the home that had a reverse mortgage on it that they'll be aware of that you want the payment in full amount for you to take the home back once you have that amount.

You have two options you can either pay that loan off in cash or take out a new mortgage to pay off the reverse mortgage that pointed to, you know would be something you could take back to the reverse mortgage company and then from that point forward. If you don't have the cash to pay it out right. You didn't have to assume that mortgage payment that you would be taking out does that make sense Floyd okay so I think that's where you need to head from here get that payment in full amount. I think that'll tell you where to go if you do end up taking out a mortgage to cover the payoff I get at least three quotes before you land on one of perhaps bank rate.com could give the best loan program. We appreciate your call today I were heading south to Florida hi Kevin, how can I assist you in my call. Your question in regard to handling all coping, time and time so I know my struggle with my credit card debt that you have also do want to go ahead and bet that it looks to give you how much of my Bible that you go ahead and be that investment.

Yeah, that's a great question.

How much do you have in credit card debt. Kevin now about 9000. And do you have a 401(k) at work are we looking at contributing somewhere else will you contributing anything currently. Yeah, they match the full 5% dollar for dollar. Yet okay it's are you looking to put more to work beyond that. And that's your question. Are you wondering if you should even be doing that will stop you ever get sly I would stay with that because you're getting 100% return on your money and I can get that anywhere else but I'm getting courage a Kevin in two areas one is not to do anymore investing until that credit card debt is paid off, you're just not going to find a guaranteed return of whatever that interest rate is on those cards, 12 or 15 or 18% anywhere in the stock market. Now you're getting 100% return in the 401(k) match but apart from that you not find any guaranteed return. So I would set that aside and really focused on taking 100% your margin and snowballing that that you piling every extra dollar beyond the minimum payments for all the cards on the lowest balance into you get all of them paid off. Then we can look at you you perhaps investing this. Secondly, I want to make sure while you're paying off the credit card you build up an emergency fund. If you don't have one of at least $1500 and then before you invest. Once a credit card debts paid off, let's get that up to 3 to 6 months expenses. Lastly, I be really careful with that investing in crypto and trying to pay play speculative investing. It just doesn't pay off in the long run. I don't think crypto's going anywhere the technology the block chain technology behind it. But in terms of it being a prudent investment is just way too much volatility and speculation for me and I'd encourage you to stay away from it. I'd encourage you to be more of a steady plotter with your investments and just be dollar cost averaging into the broad market as opposed to trying to pick the winners and losers.

This is my perspective, but in terms of the priority order. I go $1500 in emergency fund. Everything focused on the credit cards and then additional long-term investments. After that, we appreciate your call today quickly to Indianapolis, Indiana body.

I just have about a minute. How can I help you wanted to get everything set up well on all that and I want the money from the house to go to my two daughters and my 4 Grandchildren Way to do that you can spell that out in the will, Bobby.

That's fairly simple where you would basically decide and reflect in the will exactly how you want your assets to be distributed. The executor would handle that at your death. And if you're married at you and your after both of you pass away and it can be passed very efficiently through the Polk probate court.

According to the last will and testament. So the next step for you is to visit with an estate planning attorney someone who could draft that will for you it should be less than $500 and you will make sure that it's done right and enforceable in according to the laws of the state of Indiana. So that's where I'm headed next and perhaps while you're there, you can think about living will, healthcare, Sarah getting the durable power of attorney to deal with some of those other issues. If you're incapacitated you have determined who can make decisions have everything you describe to be taken care of in the will appreciate your call today for us moneywise. Life is a partnership between moneywise me so thankful for friends of Moody to say thank you to Deb Solomon, Amy Rios and Jim Henry for their support.

Today I thank you for being here this is where God's word intersects with your financial life can join us next time